Volume on the Bursa Malaysia Derivatives was light at 1,581 lots of 25 tonnes each, compared with Thursday's hefty trade of 6,099 lots. The benchmark third-month contract, January, ended down 4 ringgit at 1,431 ringgit a tonne ($379.58), after moving in a tight 8-ringgit band.
Other traded months closed down 1 to up 2 ringgit.
"There was sone late buying by people scared if they did not cover right away, they might miss out the whole of next week from any rally in soyoil," a trader said. "But that wasn't enough to push up the market." Soyoil and palm oil compete for exports and their prices often move in step.
Soyoil prices on the Chicago Board of Trade have been volatile lately as the commodity is increasingly viewed as an energy product for biofuel, rather than as a traditional source of food.
The palm oil market will be closed for three days next week - Tuesday, Thursday and Friday - to mark the Hindu Diwali and Eid -ul-Fitr Festivals.
Although trade is supposed to go on as normal on Monday and Wednesday, dealers expect little activity. "It'll practically be a dead market those two days with so many people holidaying," said another trader. "That's why many have decided to close positions today." Prices of physical Malaysian crude palm oil were hardly changed, taking their cue from the futures market. Offers for October delivery closed at 1,440 ringgit, against bids at 1,437.50. Trades were reported at 1,437.50-1,435 ringgit.
PALM OIL FUTURES
October (south):1440.00
Open/High/Low: 1433/1438/1430.
Previous close: 1440.00
PALM OIL PHYSICALS:
January (3rd month): 1431
Previous settlement: 1435
FUTURES:
Benchmark January down 4 ringgit at 1,431 ringgit ($379.58) a tonne.
PHYSICALS: Offers for October flat at 1,440 ringgit.